One of the things I love about being an eCommerce entrepreneur is that the landscape is dynamic. I am always having to learn and find ways to compete.
So, the motto that I embrace and truly believe in is adapt and thrive.
For over a year now I’ve been hearing A LOT about how Amazon sellers are diversifying their income using TikTok Shop. I already use Amazon FBA and Shopify for my two niches, but I’ve avoided selling on social media channels (social commerce). Until now.
Last month I was listening to a podcast that was explaining how with a small amount of effort I could set up a TikTok Shop, connect with influencers, and start promoting and selling to 150 million US users!
Image Credit: Statista
So, it left me thinking. Could this diversification to TikTok Shop be as easy as it sounds? In this post, I’ll share everything I’ve learned about how an Amazon and Shopify seller can set up a TikTok Shop. I will cover:
Over the last few years, TikTok has been investing in its social commerce channel called TikTok Shop.
This has been especially successful in China, where users are already sensitized to social commerce and using the TikTok shopping channel. In the last year, TikTok has been ramping up in the USA with the aim to grow merchandise volume by tenfold to $17.5B in 2024.
With TikTok's huge user reach and engaged community, the platform offers unique potential. Especially for connecting with younger audiences and driving viral growth.
Social commerce is on an upwards trend with forecasts predicting that social commerce revenue will reach nearly $3 trillion by 2026.
Image Credit: Statista
TikTok shopping isn’t widely used by older generations and your product may not be desirable to the younger or Gen-Z TikTok community.
Each business, brand, and product is different. It’s important to test your ideas and strategies before going all in.
But there are two financial truths that you can include in your decision-making:
TikTok Shop commission rates (TikTok’s referral fee) are currently only 2% commission with a planned increase to 6% by mid-2024. Even so, it still compares favorably to Amazon who keep around 15% on average.
PPC campaigns in TikTok are also potentially cheaper to run with CPC prices starting at $0.02 versus $0.05 on Amazon.
It’s not to say Amazon sellers should jump ship and move their inventory entirely to TikTok. But instead, consider how selling on both platforms could help you increase sales and ROI overall.
There are different types of TikTok Shop accounts for:
For Amazon sellers looking to diversify channels and target customers through TikTok Shop, you’ll need to set up a TikTok Shop seller account.
A TikTok seller business account (Seller Central dashboard) is simple and free to use. It also gives you access to certain key features such as advanced analytics and access to the TikTok Ads Manager (and Spark Ads).
To register just go to: www.tiktok.com/business/en-CA/solutions/business-account
For a seller opening a business account, you need:
You’ll receive an email to confirm (or reject) or application.
If you are an Amazon seller with no other eCommerce shopping channels, then you can start selling through your TikTok Shop without any other integrations and use it as a standalone platform for your social commerce empire.
If you already have a Shopify store, then it’s better to connect the two platforms so that your products can be imported into your TikTok Shop.
Integration is a better way to run the two stores so that you can manage orders, inventory, products, shipments and TikTok advertising all in one place.
To do the TikTok-Shopify Integration here are the steps:
Install the TikTok for Shopify app.
Open the Shopify-TikTok App and connect with your Shopify store and TikTok Shop.
Now you can start promoting your products, set up TikTok ad campaigns, and more (directly from your Shopify store)!
PRO TIP: As a seller, you may find it easier to manage everything from your Shopify dashboard, but you should also explore the advantages of using TikTok’s own Spark Ads tool.
Setting up a Shopify-TikTok App Integration is just part of the story. To generate sales, you also need to think about building brand awareness. There are several strategies you can utilize to increase your product awareness on your TikTok store to generate sales:
TikTok has its own native PPC advertising feature called Spark Ads.
Like with all PPC campaigns, you want bang for your buck. With TikTok shopping ad campaigns, the real trick is to repurpose high-performing videos that have already proven great engagement with users.
Managing this is easy inside of TikTok because Spark Ads has a unique feature that lets you publish content as ads:
Leverage the power of TikTok’s algorithm to target your content to audiences that already have an interest in your niche or product.
Like with other social media channels you can use keywords in your posts and hashtags to help the algorithm understand your content and drive traffic to your TikTok store. I’m oversimplifying the process, but the concept is the same as website SEO or adding Amazon keywords to listings.
Using TikTok livestream shopping you can demo products in real time. Your audience can engage directly with you and get their questions answered without any delays. Your audience can also buy from the TikTok Shop during the livestream session!
If you need to get up and running quickly then a great way to start is to outsource to content creators and influencers who can create User Generated Content (UGC) videos. The benefit of using this strategy is that Influencers already have large numbers of followers who trust their content and are typically engaged and interested in watching their videos.
One of the key benefits of using TikTok Shop is that the developers have made it incredibly easy to connect with TikTok influencers. Inside your TikTok Shop dashboard (Seller Center) you can search for influencers to promote your products.
PRO TIP: You can select ‘Open Collaboration’ so that Influencers can approach you if they’re interested in your product.
Influencers typically work off a commission rate (although some do organically promote products without any commissions agreed). Another useful feature is that all commissions and fees are managed through your TikTok Shop.
Using Amazon affiliate links on social media apps like TikTok has been a great way for Amazon sellers to generate off-Amazon leads.
However, TikTok wants its users to use TikTok Shop and has made it difficult to add affiliate links. There are several workarounds but they’re all a bit clunky. For example, you can legitimately add a link in your TikTok bio to your website or YouTube channel and drive traffic back to Amazon from those sources.
In summary:
TikTok is no longer just a platform for short-form entertainment videos. The platform is proving itself to be a new force in social commerce.
In this article I have covered:
For the right brands and products, TikTok Shop is an opportunity to create a real identity and strong following on a platform that offers business users-friendly solutions at competitive fees.
With more competition, higher fees, and growing PPC costs, it’s easy to see why Amazon sellers are looking at TikTok as a viable way to diversify their customer base and secure future income.
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Jessica Clark has a passion for all things eCommerce. She’s always learning and adapting to find efficiencies and to stay competitive in a fast-paced sector.
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